The Lawbringer: A good cause

On Monday, Blizzard announced that it would begin selling a new companion pet in the pet store and that for a limited time (until July 31), 100% of the cost of the pet would go to the American Red Cross to aid victims of the tsunami and earthquake in Japan. Blizzard used its art and time assets for a great cause, using a previously successful tactic to raise money for people in dire need. While Blizzard is not donating the money directly, it is facilitating donation collection and incentive by putting the pet up for sale.
What interests me is the level of fervor and the community outcry for this type of relief effort by Blizzard. Why are people so eager to push a corporation like Blizzard, which has a costly back end to monitor and maintain, into what amounts to a large-scale companion pet release for charity that people would have donated to anyway based on the generally accepted understanding that people are charitable? First, we need to learn a tiny bit about corporate donations and charity and explore why people like Blizzard in the first place. Second, we can ask why we want Blizzard to do the right thing.
A look at corporate charitable donations
While Blizzard's own campaign to raise money for the American Red Cross is not a charitable donation directly from Blizzard, it is still worth a look at the precedent of where we are today and why, as patrons of this huge corporation, we feel that this is the good and just thing for Blizzard to do. Back in the day, corporations and their powers were governed by statutes and their own rules (certificates of incorporation, not always called such) in a very narrow fashion. If a corporation acted outside of its general purpose or what it was "allowed" to do, this was considered ultra vires, or "beyond the power" of the corporation. It was incredibly unfair to people contracting with a corporation and gave corporations huge power in dealing with contracts, because they could just argue that they weren't authorized or acted out of purpose for any given dealing.
We've gotten rid of the ultra vires exception these days for the most part and replaced it with a broad understanding that corporations have the power to engage in any type of lawful business, as to not screw over the people they contract with. Part of the implied powers of corporations includes the ability for the corporation to make charitable donations without shareholder approval. If challenged by a shareholder, that donation has to be so incredibly unreasonable to pass the test.
Basically, we want corporations to be charitable and have pulled out most of the stops for them to do it. We, as players, want to give to charity and want to clamor at Blizzard's door for it to use their great influence to embark on a worthy cause. But is our imparting our own desires a reasonable action?

Obviously, Blizzard is spending some money to make this Red Cross donation possible. Part of the pet store upkeep, service, and support go toward facilitating these sales for charity. No doubt that these operating costs are reasonable in the minds of the public and shareholders, since it's for a good cause. In the grand scheme of things, the pet store probably doesn't cost the lion's share of Blizzard's revenue to run and maintain. In fact, being charitable gives you some political capital to spend elsewhere, and (not to be cynical) it makes people happy and adds to the corporate reputation. It's a reasonable amount of time and effort put into such a worthy cause.
The desire for just corporations
We like corporations. We like them a lot. In fact, there are huge numbers of liability issues that are just thrown out the door in regard to many types of corporations in America, and that is usually a good thing. Taking out some of the investment risk in a corporation allows people to invest with relative safety, and we get awesome things out of a lot of publicly held corporations.
A corporation is treated like a person, for the most part, and we want people to be good. We feel a deep connection with Google and Blizzard and Coca-Cola. If you didn't feel these connections to these "legal" people, you wouldn't have the feelings you do when you see Google blunder on privacy or Blizzard make a potential mistake with Real ID. You care. You really care.
Blizzard is still a bunch of guys who got together to make great games. Sure, it's a bigger building now, and they've got an orc statute out front made out of bronze, but it's still the same guys and gals. We like those guys and gals -- hell, we love those guys and gals. And that's where the clamor comes in. But Activision Blizzard is still a company with shareholders who have every right to ask why did Blizzard not put up the Cenarion Hatchling pet for 50% to charity, when the amount of revenue being pulled in would have been substantial.

Ever since the Winged Guardian was announced, people began speculating that Blizzard was going to offer the mount for Japan relief. The clamor became louder, as Blizzard is noted for its generosity due to its two successful years of donating to The Make-A-Wish Foundation through companion pet sales. Apparently, the idea hit home enough for Blizzard to grab a relatively rare art asset, put it up on the pet store, and donate 100% of the proceeds to the American Red Cross until July 31.
But what about getting the pet makes this whole donation business more palatable for players? We want a corporation to be generous, of course, but they have a back end to run and servers to maintain and games to create. Why Blizzard? Where is the responsibility, and why do people feel that Blizzard has this responsibility? It's because Blizzard as a whole and to its players is responsible for good things and has the machine to make big things happen.
Charitable people
The question I asked myself (as relatively cynically as I would allow) was about certain comments from around the WoW community relating to the pet sale. People commented that they were never a fan of downloadable content or digital purchases, but they would do this for charity. These are obviously charitable people, but would they have donated the same $10 to the cause without the added incentive? Why let your hate of microtransactions get in the way of being a charitable person? You can still help Japan without buying an in-game item. I guess, from my own little box here in New York, I figured this particular instance was a bad time for people to talk about the evils of DLC and throw their hands up in the air and succumb to the microtransaction demons. "Well, it's for charity," they said -- but why isn't the act of charity enough?
Hopefully, the Cenarion Hatchling donation drive will bring a good chunk of much-needed donation money to the people of Japan for their suffering. I'm sure it will -- Blizzard is good with these things. Many corporations are. It's interesting to see people's visceral responses to a person that technically doesn't exist yet at the same time does, because it is a person made up of the people we know and love.
Filed under: Analysis / Opinion, The Lawbringer






Reader Comments (Page 1 of 3)
Darky May 6th 2011 2:17PM
I don't understand the hate, well actually I do, like you matt I'm a bit of a cynic, people are hateful, they just are, not everyone is, but there is a very loud minority of people who are. They like to rage at things that they have no real reason to rage about, honestly sometimes i think these people should take a big step back and have a good long look at how ridiculous they look.
razion May 6th 2011 2:17PM
The win emanating from the second to last paragraph is palpable.
jbeleau May 6th 2011 2:20PM
Perhaps I did not read this right, but your speculation there does not cover the idea that some people are donateing to Japan and also buying this pet in addition to any donations.
I am suggesting both of these can be true at the same time for the same people...
- Donating money to Japan (and the new tragedy in the US south).
- Buying the pet for the pet alone would be enough incentive, and it being charity is a nice bonus.
You seem to suggest that this is people's only contribution and they had to be bribed into it with a pet. Which is quite possibly true for some.
Eirik May 6th 2011 2:20PM
I have not stirred myself to go to the blizzard store and check for myself. Is the Cenarion Hatchling for sale at $10 only, or can you donate a greater amount than that in this fashion?
Darky May 6th 2011 2:27PM
Nope but there's always http://www.redcross.org/en/ if you're feeling generous.
Eirik May 6th 2011 2:32PM
as well, there's also http://www.redcrossblood.org/
You can't buy blood at the local Blanket and Emergency Supply store. If you can, give.
Iirdan May 6th 2011 2:51PM
And if you're hellbent on the Hatchlings, you can always buy multiple ones and give to friends or what not. My mom, for instance, insisted on no gift for Mother's Day this year, so I got her one of these to signify the donation.
Chetti May 6th 2011 5:56PM
@Iirdan, I did the same thing at Christmas with the.. and boy is my memory shot - either the moonkin or the lil ragnaros. I bought one of each as presents for my best friend and her mom. They're like family, and we're both a little financially stretched so we agreed on nothing expensive. Actually, she told me no present. But, I like Christmas, and I like to give presents. So, since I wasn't going to see them till new years, I bought the moonkin for her mom and the lil ragnaros for her. I forget which was the charity pet, I would have bought them both anyway, but it was nice that something of my total bill was going to a charity. I haven't purchased this new pet yet, but I will. I may buy one for another friend of mine also. I like that this one is 100% of the price. I donate to various charities when I can. I alway hit the $1 at petsmart for the helping of homeless pets, I drop a dollar in a bucket for THON at penn state (my alma mater), I can't say if I would buy this pet anyway (though I am a fan of the cenerions).. but the charity part is certainly a good reason to make sure I buy more than one.
Susinko May 6th 2011 2:29PM
The way I see it, Blizzard did something they didn't have to do. While many people may have donated to the Japan relief effort, this pet will help raise even more money from people who wouldn't have donated. It is a wonderful thing they did and I for one appreciate what they are doing.
Some people are furious that they used a rare TCG pet for this effort. They feel like the very rare pet they have is now cheapened. Personally I find this to be incredibly selfish. Would I like to see my rare Spectral Tiger Cub everywhere? On one hand I love how special my little kitty is. On the other, I like people getting things like this that make them happy. But if it was sold to help those who have survived a disaster, I say, kitties for all!
zubbiefish May 6th 2011 3:00PM
The people who think that Blizzard injured them in some way, by using this particular art asset, which they own btw, are the first people in line for "free" stuff. Greedy and cheap, these folks tend to believe that what's theirs is theirs, and what's yours is theirs. They get paid for everything they do, and pay for nothing they don't want to.
Not related to this comment, but typically, charitable donations as a way to relieve your tax burden, really only works well if you have to pay a lot of tax in the first place, ie. you make a lot of money. For the rest of us, we donate because it's a good thing to do.
Badgelooter May 6th 2011 3:17PM
I think the problem is that the people who purchased the TCG pets are upset that they were induced to buy the loot card with the idea that their pet would be something unique that not everyone would have. Rarity can add value to an item. The argument goes something like "I would not have purchased this card for X dollars had I known that anybody could acquire it with X-Y dollars in the future". Imagine buying a one-of-a-kind piece of art only to find out that the artist decided to make and market 5,000 copies.
I'll grant that it's a pretty silly argument when you're talking about a digital pet that has no value use outside of the cosmetic enjoyment you derive from it, but it's there.
DC May 6th 2011 3:26PM
In reply to Susinko and pet sale being cheapened:
The people you quote are of the collector's mindset. People take pride in having a good collection of things that other people don't. (See baseball cards, stamps, coins) In all of these cases the producer basically goes into a social contract saying "We will not devalue your collections. Rare things will stay rare." If they don't, the whole system of collectors collapses. This is what blizzard did. It is compounded by the fact that the pet is completely identical to the one previously.
Of course, we don't own any of these things on our account. It's not really our collection, but the same social and psychological processes go into it.
MattKrotzer May 6th 2011 2:29PM
I find it interesting that the American Red Cross has said repeatedly that donations they receive will not necessarily go to Japan. They will be putting in some efforts in Japan, but they will put money where they best see fit. Japan is quite a prosperous nation, and from the reports I've read, capable of tending to this disaster without foreign aid, much in the same way the U.S. does.
In light of this, it bothers me that Blizzard markets the pet as going to Japanese Relief. It smacks of marginal honesty, having just enough basis in fact that they can say it legally.
As someone who works in marketing, I understand WHY they're advertising it this way, but I don't feel comfortable about it.
erictapley May 6th 2011 3:09PM
Actually, Matt, it is possible to donate specifically to a particular cause when there are major disasters. A donation to the Red Cross in general may or may not be used for the disaster in Japan, but a donation to the Red Cross that is earmarked for their "Japan Earthquake and Pacific Tsunami" fund will go to that effort.
I assume that, in this case, Blizzard has marked donations from the Cenarion Hatchling for this fund.
I served on the Board of Directors for my local Red Cross Chapter for many years and had a lot of experience with this. It works the same way if you make a donation at your local Chapter -- bring in a bucket of cash for Japan relief and that's what it'll go for.
Go ahead. Take the bucket, and the cash, and go... :-)
Saeadame May 6th 2011 3:25PM
Yep! There is the general Red Cross donation - which can be used for anything Red Cross needs money for, and then there's donating to the specific cause of Japan's Tsunami Relief. As well, if you're going to pick a place to donate, Red Cross is probably the best, they spend the least amount of their money on administration out of ANY charity (only about 10%), so as much of your money as possible actually reaches the people you're trying to help. That's a thing to keep in mind for charities, by the way, some spend a large amount of money donated on upkeep of the charity, so not that much gets to the people you're trying to help.
MW May 6th 2011 5:07PM
If you want another low-overhead charity, then Catholic Relief Services is even better than the Red Cross. They give 95% of what is donated to the causes.
I donate to them exclusively. Their low overhead probably comes from having lots of people with religious vocations who work for them, and they always work through local agencies who are already on the ground.
http://crs.org/
I donated to them right after the earthquake, but I still may buy the pet.
Brett Porter May 6th 2011 5:39PM
To those that replied to Matt.. I would like to assume that Blizzard is earmarking it for the relief effort in Japan, and that very well may be implied by the current advertising for it.
However, I would very much like to know for a fact that it is going to Japan relief and not the general ACR fund. I think it's fair for people to question where it is actually going, though I have no doubt it will end up making its way from Blizzard to Red Cross.
Shoryl May 6th 2011 7:56PM
Here is my theory on the Red Cross/Japan relief situation:
1. If too much money is raised for a Japan Relief Fund, it can't be used for anything else. If I donate my money to a charity, I want it to be used, not to sit in a bank or government escheatment account somewhere because it wasn't needed.
2. Major corporations, when they make these kinds of donations, tend to either (a) put a cap on it, or (b) give the organization they're taking the donations for an estimate of how much they think they'll be able to raise. This helps organizations like the Red Cross plan how to spend non-earmarked funds and therefore get the most bang for every dollar they are given.
3. I would like to think that any funds earmarked for this particular disaster through the Red Cross would also be used to allow them to raise their "other" major catastrophe capitol - blood. It costs money to run drives and properly test, store and transport the donated blood. I would hope that they could, for instance, use Disaster funds to transport blood to the disaster sites.
4. I don't believe that my $10 (or $20 if I buy one for each myself and my sweetie) would do much by itself. But a drive like this one will produce a large sum of money in $10 increments. I can feel good about supporting an organization that is willing to support a cause. I am also more likely to spend my money on other Blizzard Store items, because I am given the sense that Blizzard Does the Right Thing.
I work in the banking industry, for one of the few stable banks in the US. I understand what reputation means to a company and how it affects how I spend my money. But even though I know this, I still get warm fuzzies from the idea of buying a 'yes' toggle in Blizzard's database and asking Blizzard to donate $10 'anonymously' for me.
Mortenebra May 6th 2011 2:29PM
At the risk of being downrated and called a legal noob (that is, a noob to all things law-/fine print-related), I've been thinking about something since the news was broached and I read a lot of the comments: How is the pet/disaster relief donation different from the typical tax deduction/disaster relief donation?
My knowledge of such things is rudimentary but I really don't see a difference between the two. Instead of a tax deduction for my donation, I get a virtual (and cute!) companion pet. When I was in high school, the disaster that people were scrambling to help with was the earthquake near the Indian Ocean that caused a huge tsunami. Campus groups went around collecting donations and gave out stickers akin to the "I voted!" ones you get during elections-- which is kind of what I see the Cenarion Hatchling as: something that says, "The person playing this avatar participated in the donation drive for Japan via Blizzard."
Is it the fact that there's the potential of publicly displaying one's altruism through the pet, whereas no one except you and the person doing your taxes (if you have one) know if you've made donations or given to charity? Is that what's grinding people's bones about the whole thing?
Durenas May 6th 2011 5:03PM
The transaction between you and blizzard for the purchase of the pet is simply a non-charitable purchase. Blizzard has promised that the proceeds of the sales will go to the red cross for the tsunami relief, and you may think of your purchase as your donation, but legally, the only donation is between blizzard and the red cross.